nep-spo New Economics Papers
on Sports and Economics
Issue of 2019‒04‒08
four papers chosen by
Humberto Barreto
DePauw University

  1. A note on the UEFA Euro 2020 qualifying play-offs By Csató, László
  2. A Real Options Approach to Multi-Year Contracts in Professional Sports By Rockerbie, Duane; Easton, Stephen
  3. A family of rules to share the revenues from broadcasting sport events By Gustavo Bergantiños; Juan D. Moreno-Ternero
  4. Incertitude de classement final et affluence en Ligue 1 française de football : une nouvelle approche By Jean-Pascal Guironnet

  1. By: Csató, László
    Abstract: The 2018-19 UEFA Nations League is the inaugural season of this competition, which provides the basis of the seeding for the 55 men's national football teams participating in the qualification process of the UEFA European Championship 2020. In addition, unlike previous editions, the teams for the play-offs are also selected with the consideration of their performance in the 2018-19 UEFA Nations League. Thus 16 teams, which failed to qualify through their group, are divided into four paths of four teams each according to a complicated rule because the places vacated by the 20 directly qualified teams should be filled. We provide a critical examination of the relevant UEFA regulations and show that the articles may contradict to each other and may lead to an unfair formulation of play-off paths. Straightforward solutions for both problems are suggested.
    Keywords: sports rules; UEFA Euro 2020; mechanism design; fairness; consistency
    JEL: C44 D71
    Date: 2019–03–27
  2. By: Rockerbie, Duane; Easton, Stephen
    Abstract: This study utilized a number of useful innovations to estimate marginal revenue product’s for Major League Baseball free agents.Two robust results emerged from our empirical results. Free agents that are paid a salary below the MLB average tend to be underpaid, while those paid a salary above the MLB average tend to be overpaid. In addition, free agents on single-year contracts tend to be underpaid, while those on multi-year contracts tend to be overpaid. These results are not consistent with the standard monopsony talent market assumption, unless one resorts to arguing that the talent market is segmented. We develop a simple model of real options to demonstrate how a player can be overpaid or underpaid depending upon the length of the contract, the available opportunities for the player to move during the contract period and the player’s expected performance. We believe that a real options approach to player contracting is an important addition to the market-based approaches relied upon in the past.
    Keywords: marginal revenue product; baseball; real options; contracts
    JEL: J41 L83
    Date: 2019–03–30
  3. By: Gustavo Bergantiños (ECOSOT, Universidade de Vigo); Juan D. Moreno-Ternero (Department of Economics, Universidad Pablo de Olavide;)
    Abstract: We consider the problem of sharing the revenues from broadcasting sport league events, introduced by Bergantiños and Moreno-Ternero (2019). We characterize a family of rules compromising between two focal and somewhat polar rules: the equal-split rule and concede-and-divide}. The characterization only makes use of three basic axioms: equal treatment of equals}, additivity and maximum aspirations}}. We also show further interesting features of the family: (i) if we allow teams to vote for any rule within the family, then a majority voting equilibrium exists; (ii) the rules within the family yield outcomes that are fully ranked according to the Lorenz dominance criterion; (iii) the family provides rationale for existing schemes in real-life situations.
    Keywords: resource allocation, broadcasting, sport events, concede-and-divide, Shapley value
    JEL: D63 C71
    Date: 2019–03
  4. By: Jean-Pascal Guironnet (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Cet article propose une nouvelle méthode pour évaluer les e¤ets de l'incertitude d'une rencon-tre et de classement …nal sur l'a-uence dans les stades de Ligue 1. L'issue incertaine d'un match est évaluée à partir des di¤érences relatives de qualité des équipes. Contrairement aux précédentes études, ces forces intrinsèques sont estimées de manière aléatoire à partir des di¤érences de budget salarial des clubs et elles sont, par la suite, réévaluées en fonction des résultats observés durant la saison. En outre, l'incertitude de classement …nal est ici modélisée dans un espace de probabilités permettant d'avoir une information statistique plus complète que des indicateurs agrégés. Suivant cette approche, trois résultats principaux émergent : (i) l'incertitude d'une rencontre présente un e¤et signi…catif non-linéaire et positif sur l'a-uence dans les stades, (ii) les spectateurs ont des demandes antagonistes en espérant que leur club favori ne soit pas rejoint par des poursuiv-ants durant la saison mais paradoxalement ils souhaitent une incertitude plus élevée concernant le classement …nal, (iii) l'intérêt du spectateur n'est pas linéairement décroissant en fonction de la hiérarchie du classement …nal mais de forme sinusoïdale avec un engouement plus important con-cernant l'attribution des places quali…catives en Europa League et pour les équipes luttant contre la relégation. L'intérêt pour la victoire …nale peut s'avérer prépondérant pour l'attractivité globale du championnat, mais ce dernier est devenu plus volatile avec les nouvelles capacités …nancières du PSG. Classi…cation-JEL: C11, D40, Z28
    Keywords: Incertitude,Calcul Bayésien,Football,Affluence
    Date: 2018

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